Australians’ biggest money worry for 2023 as inflation stays high

The most common financial concern for the coming year will not be surging mortgage and rental costs, but an essential cost that affects everyone.

Putting food on the table is the biggest financial worry for Australians in 2023, and almost half are not confident that the government and Reserve Bank can ease inflation next year.

New research from Canstar has found consumer concerns over everyday household costs have surged, and groceries are the biggest pain point for nearly one in five, followed by rent, energy, mortgage and fuel costs.

The proportion of people concerned most about groceries tripled in five years to 18 per cent, it found, and consumers are being urged to sharpen their savings focus.

Canstar’s Consumer Pulse Report 2022 also found 44 per cent of people lack confidence that authorities can slow the surge in living costs, with women more pessimistic than men, and 33 per cent are currently stressed about their finances.

Canstar group executive of financial services Steve Mickenbecker says “it’s a matter of how long households will be able to grin and bear it before they find themselves in a dire financial situation”.

“We can’t reduce the inflation rate but we can change our behaviours,” he says.

Household expenses are expected to continue climbing in 2023. Picture: iStock

“It sounds clichéd, but cheaper cuts of meat, a different location or style of accommodation, lower loan interest rates and less wastage. It’s time to review the budget and remember it won’t be forever.”

Canstar’s tips to reduce inflation at home include:

• Search for discounted gift cards and use them to save at the shops.

• Cut your biggest expense first, typically mortgage and rent, by negotiating with your lender or landlord, or switching to better deals.

• Treat insurance renewal notices as a chance to shop around and save, because new customers often pay less.

There are several other ways for people to reduce grocery costs. Always shop with a list, consider supermarket labels for cheaper options or rethink loyalty to just one chain, which could be costing you.

MyBudget founder Tammy Barton suggests shopping online, seeking specials and taking advantage of free delivery trials.

“There are great apps out there that can help to find the best deals – like WiseList, basically it compares Coles and Woolworths together to tell you where it is cheapest for you to shop for the items you need,” she says.

“You can also download the supermarket apps, which effectively do the same.”

Barton recommends using reward programs to maximise savings. For example, Woolworths Everyday Rewards earns one point per dollar spent and can be accumulated to deliver $10 shopping discounts, linked with electricity bills or Qantas frequent flyer points, she says.

Originally published as Australians’ biggest money worry for 2023 as inflation stays high